Much-loved video game retail chain GameStop (GME) is eyeing its long-awaited NFT marketplace and Web3 gaming unit after suffering a $147.5 million net loss during Q4 2021
GameStop quietly built a barebones NFT's website in mid-2021, but has ramped up efforts significantly this year after presentation of a division of NFT and Web3 games in January together with writing an important association with ethereum (ETH) scaling the Immutable X solution the following month to build an NFT marketplace.
As part of its Q4 results, which ended on January 29 and were released on March 17, GameStop revealed that it intends to launch its NFT marketplace by the end of Q2 2022.
$GME It will reportedly open its NFT market at the end of its second quarter of 2022.
SHARE THIS AS SOON AS POSSIBLE! #GME #gamestop #stocks #news pic.twitter.com/CW2oDPHul1- Carlostrades (@rockstar_stocks) March 17, 2022
The firm also highlighted that the Immutable X deal is set to earn $150 million worth of IMX tokens from the firm upon "achievement of certain milestones," noting that it has hired "dozens of additional people with expertise in areas such as blockchain gaming, e-commerce and technology, product refurbishment and operations.โ
GameStop's net loss of $147.5 million is 83% worse than a year earlier, while its loss of $1.94 per share he sits well outside Wall Street estimates of $0.84 earnings per share.
The price of GME appears to have been significantly affected by the release of GameStop's Q4 financials, with the price falling 7.31% to around $81.29 at the time of writing. GME has been on a strong downward trend this year despite positive developments in its Web3 initiatives, with the price falling by more than 40% since the beginning of January.
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Digging a little deeper into the report, GameStop posted sales worth $2.254 billion last quarter, up slightly from $2.122 billion a year earlier. A major hurdle in the latest figure was cost of sales of $1.87 billion, while selling, general and administrative expenses totaled $538.9 million.
The company was able to raise more than $1.67 billion in capital, which was enough to eliminate โall of the companyโs long-term debt, other than a $44.6 million low-interest unsecured term loan associated with the French government's response to COVID-19. โ
despite a bearish trend in the NFT market In recent months, GameStop partner Immutable X has gone from strength to strength, the firm announcing a $200 million Series C funding round at a $2 billion valuation on March 8, sending IMX's price up roughly 50% in 24 hours at around $1.78. Since then, the price has dropped back to around $1.54.
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